Are we all equal when it comes to reducing transaction costs through ICT? Reflection based on French farmers

Romane Guillot (), Magali Aubert () and Anne Mione ()
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Romane Guillot: MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier, UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement
Magali Aubert: UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement
Anne Mione: MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier

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Abstract: This contribution examines the capacity of digital tools to reduce farmers' transaction costs. The study uses data from a survey of 159 French market gardeners. The propensity score matching method is used to identify the effects induced by the use of digital tools. We distinguish five different uses of Information and Communication Technologies (ICTs) and compare their effects according to the farmer's marketing strategy (direct or indirect sales). The results show that every ICTs use reduces at least one type of transaction cost for indirect sellers. However, for direct sellers, only the uses for price information and farm visibility tools reduce some information and bargaining costs. No digital tool reduces the main cost for direct selling farmers; enforcement costs. This study, therefore, indicates that the reduction of transaction costs by digital technology depends on its use, the farmer's marketing strategy, and the cost considered.

Keywords: Transaction costs; Information and communication tools; Marketing strategy; Farmers; France (search for similar items in EconPapers)
Date: 2023-08-29
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Published in XVII EAAE Congress: Agri-food systems in a changing world: connecting science and society, European Association of Agricultural Economics (EAAE); INRAE; L'Institut Agro Rennes, Aug 2023, Rennes, France

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